A coalition of shareholders in HSBC have called for the bank to explicitly set out how it intends to use the money it has dedicated to sustainable finance.
The coalition also demanded that the bank set a funding target for renewable energy, critical for the net zero transition.
A statement will be read today at the annual general meeting (AGM) of the bank on behalf of the coalition by responsible investment NGO ShareAction.
The investor group, worth US$892bn in assets under management, includes the Ethos Foundation, Epworth Investment Management, Royal London Asset Management, Axiom Alternative Investments, La Francaise Asset Management, Jesuits in Britain and Folksam pension fund.
Jeanne Martin, head of banking programme at ShareAction, said: “HSBC has set a target of spending up to $1tn on sustainable finance by 2030, but investors don’t have enough information about how exactly this will be spent to know if the bank is really on the path to net zero and contributing its fair share of financing to address climate finance gaps.
“The target as it currently stands is too broad and vague.
“It gives the impression the bank is scaling up its efforts on green finance without demonstrating the difference it will make, or whether it is financing the green activities that are most needed.
“This is why we are calling on the bank to make it clear how its green finance target will be spent across environmental and social themes, with a specific target for renewable energy that demonstrates how it is shifting its financing to support the energy transition.”
